YM BioSciences Reports Operational and Financial Results for the Second Quarter of Fiscal 2013

   YM BioSciences Reports Operational and Financial Results for the Second
                            Quarter of Fiscal 2013

PR Newswire

MISSISSAUGA, ON, Feb. 7, 2013

MISSISSAUGA, ON, Feb. 7, 2013 /PRNewswire/ - YM BioSciences Inc. (NYSE MKT:
YMI) (TSX: YM), today reported operational and financial results for the
second quarter of fiscal 2013, ended December 31, 2012.

During the quarter,  YM announced  a plan of  arrangement (the  "Arrangement") 
involving the  Company,  Gilead Sciences,  Inc.  ("Gilead") and  3268218  Nova 
Scotia Limited, a wholly-owned subsidiary of Gilead (the "Purchaser"). Under
the Arrangement, the Purchaser will acquire all of the issued and  outstanding 
common shares  ("Common Shares")  of  the Company  for cash  consideration  of 
U.S.$2.95 per Common Share. In addition, holders of warrants and options  will 
each receive a cash payment equal to the difference between U.S.$2.95 and  the 
exercise price of such warrants or  options. The Supreme Court of Nova  Scotia 
has issued a  final order  approving the  Arrangement and  assuming all  other 
conditions precedent  are satisfied  or  waived, it  is anticipated  that  the 
Arrangement will become effective on February  8, 2013.

Summary Financial Results (CDN dollars)

The interim consolidated financial statements and comparative information  for 
the second  quarter of  fiscal  2013 have  been  prepared in  accordance  with 
International Financial Reporting Standards ("IFRS").

Revenue for the  second quarter of  fiscal 2013 ending  December 31, 2012  was 
$3.9 million compared to  $0.4 million for the  second quarter of fiscal  2012 
ending December 31, 2011. Revenue for the first six months of fiscal 2013  was 
$4.2 million compared to $0.6 million for the first six months of fiscal 2012.
The increase  was due  to  the sale  of  nimotuzumab licenses  and  subsequent 
recognition of all remaining deferred revenue relating to nimotuzumab licenses
in December 2012.

Net finance costs  were $5.8  million for the  second quarter  of fiscal  2013 
compared to  net finance  income of  $1.5 million  for the  second quarter  of 
fiscal 2012. Net finance costs were $5.5  million for the first six months  of 
fiscal 2013 compared to net finance income  of $9.0 million for the first  six 
months of  fiscal  2012. The  changes  in  net finance  income  are  primarily 
attributable to changes in the fair  value adjustment for USD warrants.  Under 
IFRS,  warrants  denominated  in  a  different  currency  than  the  Company's 
functional currency must be classified  as a financial liability and  measured 
at fair  value, with  changes reflected  in  profit or  loss. For  the  second 
quarter of fiscal 2013,  the Company realized  a loss of  $6.6 million on  the 
revaluation of warrants,  compared to a  gain of $1.9  million for the  second 
quarter of fiscal 2012. For the first  six months of fiscal 2013, the  Company 
realized a loss of $5.0 million on the revaluation of warrants, compared to  a 
gain of $7.3 million for the first six months of fiscal 2012.

Licensing and product development  expenses were $6.1  million for the  second 
quarter of fiscal 2013  compared with $7.3 million  for the second quarter  of 
fiscal 2012. Licensing and product development expenses were $13.3 million for
the first six months of fiscal 2013 compared with $13.7 million for the  first 
six months  of fiscal  2012. Licensing  and product  development expenses  are 
primarily associated with the clinical trials for CYT387.

General and administrative expenses were  $3.3 million for the second  quarter 
of fiscal 2013 compared to $1.2 million for the second quarter of fiscal 2012.
General and administrative expenses were $5.3 million for the first six months
of fiscal 2013 compared  to $3.3 million  for the first  six months of  fiscal 
2012. The increases in both the three and six months ending December 31, 2013,
are due to the  additional legal and  other costs relating  to CYT387 and  the 
Acquisition Agreement.

Net loss for the second  quarter of fiscal 2013  was $11.3 million ($0.07  per 
share) compared to  $6.6 million ($0.06  per share) for  the same period  last 
year. Net loss  for the  first six  months of  fiscal 2013  was $20.0  million 
($0.13 per share)  compared to  $7.5 million ($0.06  per share)  for the  same 
period last year.

As at December 31, 2012 the Company had cash and short-term deposits  totaling 
$121.2 million  and accounts  payable and  accrued liabilities  totaling  $5.3 
million compared to $132.5  million and $3.1 million  respectively as at  June 
30, 2012.

As at  December  31,  2012  the Company  had  157,967,659  common  shares  and 
7,008,751 warrants outstanding.

About YM BioSciences

YM BioSciences  Inc.  is  a  drug development  company  primarily  focused  on 
advancing CYT387, an orally administered inhibitor  of both the JAK1 and  JAK2 
kinases, which have been  implicated in a number  of hematological and  immune 
cell  disorders  including   myeloproliferative  neoplasms  and   inflammatory 
diseases as well as certain cancers. Positive results have been reported  from 
a Phase I/II trial of CYT387 in 166 patients with myelofibrosis.

This press release may contain forward-looking statements, which reflect  YM's 
current expectation regarding future events. These forward-looking  statements 
involve risks  and uncertainties  that  may cause  actual results,  events  or 
developments to be  materially different  from any future  results, events  or 
developments expressed  or implied  by such  forward-looking statements.  Such 
factors include,  but  are  not  limited to,  YM's  ability  to  obtain  other 
approvals in connection with the proposed arrangement; uncertainties as to the
timing of the arrangement; the satisfaction of the conditions precedent to the
completion of the arrangement; changing market conditions; the successful  and 
timely  completion  of  clinical  studies;  the  establishment  of   corporate 
alliances; the  impact  of  competitive  products  and  pricing;  new  product 
development; uncertainties related to the  regulatory approval process or  the 
ability to  obtain  drug  product  in  sufficient  quantity  or  at  standards 
acceptable to health regulatory authorities to complete clinical trials or  to 
meet commercial demand;  and other risks  detailed from time  to time in  YM's 
ongoing quarterly  and  annual reporting.  Except  as required  by  applicable 
securities laws, YM undertakes no obligation to publicly update or revise  any 
forward-looking statements, whether  as a  result of  new information,  future 
events or otherwise.


YM BIOSCIENCES INC.
Condensed Consolidated Interim Statements of Financial Position
(Expressed in Canadian dollars, unless otherwise noted)
(Unaudited)
                                                 
                                   December 31,        June 30,
                                          2012           2012
Assets                                                        
                                                 
Current assets:                                               
 Cash and cash equivalents      $  83,588,628  $   87,140,020
 Short-term deposits                37,628,393     45,310,288
 Accounts receivable                   342,394        252,884
 Prepaid expenses                       84,984        257,780
 Total current assets              121,644,399    132,960,972
                                                 
Non-current assets:                                           
 Property and equipment                 49,096         62,118
 Intangible assets                     375,674      2,629,682
 Total non-current assets              424,770      2,691,800
                                                 
Total assets                     $   122,069,169  $  135,652,772
                                                 
Liabilities and Equity                                        
                                                 
Current liabilities:                                          
 Accounts payable               $    1,124,770  $     803,421
 Accrued liabilities                 4,164,545      2,262,972
 Share purchase warrants            11,593,961      7,221,040
 Deferred revenue                            -        381,270
 Total current liabilities          16,883,276     10,668,703
                                                 
Non-current liabilities:                                      
 Deferred revenue                            -      1,556,853
 Total non-current liabilities               -      1,556,853
                                                 
Equity:                                                       
 Share capital                     341,491,581    340,173,078
 Contributed surplus                17,015,594     16,712,315
 Deficit                          (253,321,282)   (233,458,177)
 Total equity                      105,185,893    123,427,216
                                                 
Subsequent events                                             
                                                 
Total liabilities and equity     $   122,069,169  $  135,652,772

Approved by the Board and authorized for issue on February 6, 2013:

Tryon M. Williams, Director Dr. Nick Glover, Director



                                                                             
YM BIOSCIENCES INC.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
(Expressed in Canadian dollars, unless otherwise noted)
(Unaudited)
                                                                         
                       Three months ended             Six months ended
                          December 31,                  December 31,
                       2012           2011            2012         2011
                                                                         
Revenue:                                                                  
  Out-licensing    $   1,866,563 $    380,117  $   2,176,708   $ 630,845
   Sale of
  Nimotuzumab                                   
   licenses            1,989,800           -      1,989,800           -
                     3,856,363     380,117     4,166,508     630,845
                                                                         
Expenses:                                                                 
   Licensing and
  product                                       
   development         6,081,713   7,260,481     13,285,560  13,748,328
  General and                                   
   administrative      3,255,177   1,154,883      5,276,876   3,315,031
                      9,336,890   8,415,364    18,562,436  17,063,359
                                                                     
Loss before the                                   
undernoted             (5,480,527)  (8,035,247)    (14,395,928) (16,432,514)
                                                                     
Finance income           784,671   2,058,174       567,365   8,980,046
Finance costs         (6,617,681)    (580,705)    (6,034,542)           -
                                                                     
Net loss and
comprehensive loss $                               $
for the period        (11,313,537) $ (6,557,778)    (19,863,105) $(7,452,468)
                                                                     
Basic and diluted
loss per common    $                              $
share                      (0.07) $      (0.06)          (0.13)     $ (0.06)
                                             


YM BIOSCIENCES INC.
Condensed Consolidated Interim Statements of Changes in Equity
(Expressed in Canadian dollars, unless otherwise noted)
(Unaudited)
                                                                                       
                              Share capital   Contributed                               
                      Number         Amount      surplus         Deficit          Total
                                                                                       
Balance, June 30,                                            $
2012             157,546,793  $ 340,173,078   16,712,315  $ (233,458,177)  $ 123,427,216
Capital
transactions                                                              
Net loss for the
period                     -             -            -    (19,863,105)   (19,863,105)
Transactions
affecting owners                                                          
of the
  Company,
 recognized                                                                 
  directly in
  equity:
  Share-based
    compensation           -             -      369,479              -       369,479
    Shares issued
  on exerciseof
    options           63,199       163,170      (66,200)              -        96,970
    Shares issued
  on exercise
    of warrants      357,667       564,270             -              -       564,270
    Fair value of
  warrants
    exercised              -       591,063                           -       591,063
Total
transactions
affecting owners
of the
Company              420,866     1,318,503      303,279              -     1,621,782
                                                                                    
Balance, December
31, 2012          157,967,659  $ 341,491,581 $  17,015,594  $ (253,321,282)  $ 105,185,893
                                                                                         
                                                                                         
                                                                                         
                                                                                         
                                                                                         
                              Share capital   Contributed                             
                      Number         Amount      surplus         Deficit          Total
                                                                                       
Balance, June 30,
2011             116,681,948  $ 264,548,643 $  15,144,062  $ (213,141,438)  $  66,551,267
Capital
transactions                                                              
Net loss for the
period                     -             -            -     (7,452,468)    (7,452,468)
Transactions
affecting owners                                                          
of the
  Company,
 recognized                                                                 
  directlyin
  equity:
  Share-based
    compensation           -             -    1,507,684              -     1,507,684
    Shares issued
  on exercise
    of
    options           29,500        38,008      (15,558)              -        22,450
Total
transactions
affecting owners
of the
Company               29,500        38,008    1,492,126              -     1,530,134
                                                                       
Balance, December
31, 2011         116,711,448  $ 264,586,651 $  16,636,188  $ (220,593,906)  $  60,628,933
                                                                     




YM BIOSCIENCES INC.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in Canadian dollars, unless otherwise noted)
(Unaudited)

                                                Six months ended
                                                   December 31,
                                                        2012            2011
Cash provided by (used in):                                              
Operating activities:                                                    
 Net loss for the period                    $ (19,863,105)  $  (7,452,468)
 Items not involving cash:                                              
   Depreciation of property and equipment         21,095        33,134
   Amortization of intangible assets           2,254,008     2,254,008
   Interest earned                              (567,365)      (309,168)
   Gain on disposal of property and                         
     equipment                                     (10,636)              -
   Unrealized (gain)loss on cash and cash                   
     equivalents                                  (233,885)     (1,406,658)
   Share-based compensation                      369,479     1,507,684
   Change in fair value of share purchase                   
     warrants                                    4,963,984     (7,264,221)
 Changes in non-cash working capital                           
  balances:                                                               
   Short-term deposits                          (275,927)      (305,277)
   Accounts receivable                           (89,510)       (78,535)
   Prepaid expenses                              172,796       240,064
   Accounts payable                              321,349      (181,892)
   Accrued liabilities                          1,901,573      (482,473)
   Deferred revenue                           (1,938,123)      (297,036)
 Net cash used in operating activities        (12,974,267)   (13,742,838)
                                                         
Investing activities:                                                    
 Proceeds from sale of short-term deposits     35,457,822    35,806,437
 Purchase of short-term deposits              (27,500,000)   (34,300,000)
 Interest earned                                  567,365       309,168
 Additions to property and equipment              (18,537)       (10,220)
 Proceeds from sale of property and                            
  equipment                                         21,100              -
 Net cash provided by investing activities      8,527,750     1,805,385
                                                         
Financing activities:                                                    
 Issuance of common shares on exercise of                      
  options                                           96,970         22,450
 Issuance of common shares on exercise of                      
  warrants                                         564,270              -
 Net cash provided by financing activities        661,240        22,450
                                                         
Decrease in cash and cash equivalents           (3,785,277)   (11,915,003)
                                                         
Impact of foreign exchange rates on cash           233,885     1,406,658
                                                         
Cash and cash equivalents, beginning of       
period                                           87,140,020    32,046,630
                                                         
Cash and cash equivalents, end of period     $   83,588,628  $  21,538,285
                                                         



SOURCE YM BioSciences Inc.

Contact:

Enquiries:
James Smith
VP Corporate Affairs
YM BioSciences Inc.
Tel. +1 905.361.9518
jsmith@ymbiosciences.com
 
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